Asset-Based Lending (ABL)
Turn your balance sheet into working capital
Revolving credit secured by your accounts receivable, inventory, and other assets — typically at 80–90% advance rates.
Overview
Asset-Based Lending (ABL) provides revolving credit facilities secured by your business assets — accounts receivable, inventory, equipment, and sometimes real estate. Unlike traditional loans that rely on cash flow and personal guarantees, ABL focuses on the quality and value of your collateral. This makes it ideal for growing companies, seasonal businesses, and those with strong balance sheets but uneven cash flow. Advance rates typically range from 80–90% on eligible receivables and 50–75% on inventory.
Key Benefits
Higher advance rates than traditional bank loans
Flexible revolving structure that grows with your receivables
Less reliance on personal guarantees and cash-flow history
Ideal for seasonal, cyclical, or rapid-growth businesses
Ideal For
Wholesalers and distributors with strong receivables
Manufacturers with inventory and equipment
Seasonal businesses needing flexible capital
Companies in turnaround or growth transitions
How It Works
A clear, structured process from first call to funded.
Collateral Audit
We assess the quality of your receivables, inventory, and other assets to determine eligible borrowing base.
Facility Structuring
We structure a revolving credit line with advance rates, covenants, and reporting tailored to your business.
Lender Matching
We shop the facility across bank ABL groups and independent commercial finance companies for the best terms.
Close & Fund
We manage due diligence, documentation, and closing so funds are available when you need them.
Articles & Insights
Deep dives from our capital advisory team to help you make informed financing decisions.
ABL vs. Traditional Bank Loans: Which Is Right for You?
Asset-based lending focuses on collateral quality, while traditional loans emphasize cash flow and personal guarantees. Here is how to choose based on your balance sheet and growth stage.
Understanding Your Borrowing Base: A Practical Guide
Your borrowing base determines how much you can draw. We explain how lenders calculate eligible receivables, inventory reserves, and concentration limits — and how to maximize your availability.
When ABL Beats Factoring (and When It Does Not)
Both unlock cash from receivables, but the cost, control, and customer-experience trade-offs differ significantly. We break down the decision framework.
Asset-Based Lending (ABL) Case Studies
Real engagements, real outcomes. See how we have structured asset-based lending (abl) for clients like you.
Wholesaler Secures $5M ABL Facility for Growth
Regional Wholesale Distributor
The Challenge
A fast-growing wholesaler had maxed out their traditional bank line and was turning away large purchase orders because they could not finance inventory.
The Teal Bay Solution
Teal Bay structured a $5M asset-based revolving facility against eligible receivables and inventory, replacing the restrictive bank line and providing headroom for growth.
The Outcome
Client doubled inventory turns, fulfilled $12M in new orders in year one, and improved gross margin by 8% through volume purchasing.
Frequently Asked Questions
Straight answers to the questions we hear most.
Accounts receivable, inventory, equipment, and sometimes real estate. Lenders prefer diversified, creditworthy receivables and marketable inventory. Concentration in a single customer or slow-moving inventory may be excluded or discounted.